Replies to post #45651 on VirTra Inc (VTSI)

[fishhunter]

The answers to my questions are Easy. Simply go to the nearest 100k population metro area near where you live, walk in to the PD, and ask how recently a VirTra rep was in making a sales pitch. The answer for 95% of PDs is “never”.

Ferris refuses to aggressively sell product. Why?

[TEEROY]

Why does the company refuse to pay over $4 for shares
via their buyback? Buying the shares when there believed to me to be undervalued is the correct time to buy....to me it shows integrity by MGMT and the BOD. It also is in the best interest for shareholders to buy them now IMO. Have they publicly stated that they refuse to buy under 4?

I also wonder why Ferris does not simply tell each of his 7 friends to buy a couple percent of the company? Does he have that many friends?


Difficult to keep the faith when CEO and BOD refuse to take an aggressive role with the company and the stock. I have no problem with the BOD and them not buying shares. They are there to advise and based on most of the their resumes they are more than qualified to help VirTra.

[rut2k9]

I rarely post on these message boards. I consider them a waste of time and a fountain of ill-informed opinions and misinformation. I look when I'm bored, and I'm rarely bored. I also no longer own any shares. I had a small position, and sold it when they announce the latest reverse split. I'll explain why.

Why does the company refuse to pay over $4 for shares via their buyback?

Because they can't.
Legally.

The company may not buy on the opening trade on the NASDAQ National Market or during the last half hour of scheduled trading.

The company's purchase or bid price may not exceed the highest current independent bid quote or last independent sale price, whichever is higher.

The company must stay within trading volume restrictions unless it is doing a block trade.

Rules for share repurchases

Because there are now so few shares outstanding, and such paltry volume, the buyback is nearly worthless. If VTSI hired an outstanding bank with a great trader, they might provide a modicum of support for this stock, but in reality, they will soak up maybe 500 shares per day, and the price they pay MUST be within certain market parameters. They cannot "bid up" the price. This is unbelievably easy for FINRA to spot if they do.

The lack of shares/lack of volume has killed this stock, and it's why I sold. They are no longer a relevant institutional story, as even a small fund couldn't build a meaningful position in any reasonable period of time. Funds with dozens of opportunities don't waste months building a $1M position, and that's what it would take. Moreover, if/when they need to sell (because of a fund redemption, or a re-calibrating of sector weighting, or the death of a shareholder, or they find a better opportunity, or any other reason) they couldn't possibly "get out" without destroying the stock. Even then, if had a week to liquidate a million dollar position in a stock $32k a day, you couldn't.

So VTSI is now an orphaned retail story, only they don't have consistent earnings nor steady news flow, so it's not even that.

And that's why I sold.

Well, I'm finally going into my doctor's appointment, so no longer bored. Good luck to all. You'll need it here.